Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested or initiated by the bankrupt individual or organisation, or it can be requested by creditors in an effort to recoup a portion of what they are owed. However, in the overwhelming majority of cases, the bankruptcy is initiated by the "bankrupt" individual or organization.

Criminal law (also known as penal law) is the body of law that punishes criminals for committing offences against the state. The goal of this process is that of achieving criminal justice. The major objective of criminal law is deterrence and punishment.